Japanese shares jump nearly 2% as vaccine rollouts lift recovery hopes
28/05/2021 04:02
TOKYO, May 28 (Reuters) - Japanese shares jumped on Friday,
as investors scooped up stocks after sell-offs due to MSCI's
reshuffle in the previous session, while progress in the
country's vaccination drive lifted risk appetite on prospects of
a swift economic recovery.
The Nikkei share average .N225 crossed the 29,000 level
for the first time since May 11, jumping 1.95% to 29,106.86, as
of 0205 GMT. The index is poised for a weekly gain of 2.8%.
The broader Topix .TOPX advanced 1.79% to 1,945,21.
"The rise is too much today and the gain is not reflecting
the fundamental strength of the Japanese markets," Shuji Hosoi,
senior strategist at Daiwa Securities, said.
"This is a rebound from yesterday's sell-offs that were
related to MSCI's regular reshuffle as well as profit-taking
towards the end of the month."
The Nikkei snapped a five-day winning run in the previous
session, with a daily turnover swelling to the highest in more
than three years, as 29 names were dropped from the MSCI's main
index.
Rollouts of COVID-19 vaccines have contributed to positive
sentiment as investors hope a steady vaccination drive can help
accelerate economic recovery, market participants said.
The gains were led by cyclical shares, with steel makers
.ISTEL.T and machinery makers .IMCHN.T gaining the most
among the 33 sub-indexes of the main bourse.
Toyo Seikan Group Holdings 5901.T , up 7.9%, was the
largest percentage gainer on the Nikkei, followed by Hino Motors
7205.T gaining 7.14% and Yaskawa Electric Corp 6506.T up
6.57%.
The largest percentage loser was CyberAgent 4751.T down
3.4%, followed by Sumitomo Dainippon Pharma 4506.T , losing
1.85% and Takeda Pharmaceutical 4502.T down by 1.42%.
There were 209 advancers in the Nikkei index against 14
decliners.
(Reporting by Junko Fujita, Editing by Sherry Jacob-Phillips)
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